Gyeonggi Province’s Emergency Measures for the Stabilization of People's Livelihoods in Crisis

Gyeonggi Province’s Emergency Measures for the Stabilization of People's Livelihoods in Crisis

@Gyeonggi Province

Gyeonggi Province’s Emergency Measures for the Stabilization of People's Livelihoods in Crisis

Gyeonggi Province’s Emergency Measures for the Stabilization of People's Livelihoods in Crisis With the ongoing war between Russia and Ukraine and the never-ending COVID-19 pandemic, pressure from inflation and economic recession is taking a toll on our economy.

Accordingly, Gyeonggi Province has earmarked KRW 235.9 billion through a supplementary budget to stabilize people's livelihoods and quickly enact countermeasures to the current crisis. Gyeonggi Province has prioritized people's livelihoods and is implementing step-by-step emergency measures based on its comprehensive plan for emergency economic crisis response and livelihood stabilization. 

The supplementary budget for emergency economic crisis response in the province’s plan encompasses 15 projects in three categories: credit recovery and financial support; consumer and household price stabilization; and agricultural, fishery, and livestock price stabilization.

@Gyeonggi Province

<Credit Recovery and Financial Aid>

Under the ‘credit recovery and financial support’ category are nine projects with a combined budget of approximately KRW 90.5 billion; these projects will provide business stabilization support to small and medium-sized enterprises (SMEs) and small business owners facing difficulties due to looming household loans, loan maturity, and interest rate hikes due to the COVID-19 pandemic.

High-interest loan repayment support and low-interest operating funds (KRW 71.5 billion) are available to small business owners and SMEs using loans from non-monetary institutions and high-interest lenders. Additionally, low-interest replacement loans for small business owners are available to alleviate the burdens of loan repayment. Also, a ‘special guarantee for redemption hope’ fund of (KRW 4.4 billion) is available to aid the rehabilitation of outstanding technology companies facing bankruptcy.

In addition, Gyeonggi Province will provide microfinancing support to non-delinquent borrowers following debt settlement, support for membership with the Yellow Umbrella Mutual Aid Fund, KRW 6 billion in business liquidation support for small business owners, and KRW 300 million in special guarantee contributions for socioeconomic enterprises.

@Gyeonggi Province

<Consumer and Household Price Stabilization>

The ‘consumer and household price stabilization category’ comprises two projects with a combined budget of approximately KRW 125.1 billion. These projects have been structured to alleviate the burden of high prices and to revitalize people's livelihoods.

This includes support in the form of local currency (KRW 101.7 billion) that will vitalize neighborhood commercial districts and drive a virtuous local economic cycle. Concurrently, the 'Gyeonggi Rice and Local Food Discount Support Project' (KRW 23.4 billion) will reduce the burden of high grocery shopping costs stemming from increased prices for agricultural, fishery, and livestock products.

@Gyeonggi Province

<Agricultural, Fishery, and Livestock Price Stabilization>

The ‘agricultural, fishery, and livestock price stabilization’ category encompasses four projects that have a combined budget of approximately KRW 20.2 billion. These will help farmers, fishermen, and livestock farmers in the province with the stabilization of business management, and enable companies to export under more stable conditions.

KRW 17.9 billion has been earmarked for fertilizer price stabilization, and KRW 123 million will be allotted to partially subsidize out-of-pocket expenses for expanding feed production infrastructure. Also, KRW 1.8 billion will provided to aid bee farms suffering from the effects of global warming and climate change, while KRW 400 million from Gyeonggi Safety Export Insurance Aid Fund will bolster exporting companies facing difficulties due to rising oil prices and logistics costs. 

The intent is to implement this emergency economic crisis response plan promptly so as to assist those facing financial crises – including SMEs, small business owners, exporting companies, farmers and fishermen, and the people of Gyeonggi Province – via an effective policy that provides realistic support to those striving for financial recovery.